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Mary and Kay, Inc

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Mary and Kay, Inc., a distributor of cosmetics throughout Florida, Is In the process of assembling a cash budget for the first quarter of 20x1. The following Information has been extracted from the company's accounting records: • All sales are on account. Sixty percent of customer accounts are collected in the month of sale: 35 percent are collected in the following month. Uncollectibles amounting to 5 percent of sales are anticipated, and management believes that only 20 percent of the accounts outstanding on December 31, 20x0, will be recovered and that the recovery will be in January 20x1. • Seventy percent of the merchandise purchases are paid for in the month of purchase the remaining 30 percent are paid for in the month after acquisition The December 31, 20x0, balance sheet disclosed the following selected figures: cash. $90,000; accounts receivable, $235.000; and accounts payable. $80,000 Mary and Kay, Inc. maintains a $90,000 minimum cash balance at all times. Financing is available and retired) in $1,000 multiples at an 9 percent interest rate, with borrowings taking place at the beginning of the month and repayments occurring at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid at that time. Additional data: . Sales revenue Merchandise purchases Cash operating costs Proceeds from sale of equipment January $ 590,000 410,000 107.000 February 5680,000 440,000 86, March 5695,689 560.ee 149,889 29,000 Required: 1. Prepare a schedule that discloses the firm's total cash collections for January through March. 2 Prepare a schedule that discloses the firm's total cash disbursements for January through March. 3. Prepare a schedule that summarizes the firm's financing cash flows for January through March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a schedule that discloses the firm's total cash collections for January through March, January February March Collection of accounts receivable Collection of January sales Collection of February les Collection of March sales Sale of equipment Total cash ections Next
Mary and Kay, Inc., a distributor of cosmetics throughout Florida, Is In the process of assembling a cash budget for the first quarter of 20x1. The following Information has been extracted from the company's accounting records. All sales are on account. Sixty percent of customer accounts are collected in the month of sale: 35 percent are collected in the following month Uncollectibles amounting to 5 percent of sales are anticipated, and management belleves that only 20 percent of the accounts outstanding on December 31, 20x0, will be recovered and that the recovery will be in January 20x1. Seventy percent of the merchandise purchases are pald for in the month of purchase the remaining 30 percent are paid for in the month after acquisition • The December 31, 20x0, balance sheet disclosed the following selected figures: cash $90,000, accounts receivable, $235,000 and accounts payable, $80,000, Mary and Kay, Inc maintains a $90,000 minimum cash balance at all times. Financing is available (and retired) in $1.000 multiples at an 9 percent Interest rate, with borrowings taking place at the beginning of the month and repayments occurring at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repald at that time. Additional data: . . Sales revenue Merchandise purchases Cash operating costs Proceeds from sale of equipment January $590,000 410,000 107,880 February 680,000 440,00 86.000 March 5695,000 560.000 149.000 29.000 Required: 1. Prepare a schedule that discloses the firm's total cash collections for January through March. 2 Prepare a schedule that discloses the firm's total cash disbursements for January through March 3. Prepare a schedule that summarizes the firm's financing cash flows for January through March, Complete this question by entering your answers in the tabs below. Required Required 2 Required Prepare a schedule that discloses the firm's total cash disbursements for January through March January February March Payment of counts payable Payment of January Burchases Payment of February purchases Payment of March purchases Cash ocenating costs Total cash disbursements
gues. LOSI DUW, ACCOUILSTELeivable, payable, $80,000 Mary and Kay, Inc. maintains a $90,000 minimum cash balance at all times. Financing is available and retired) in $1.00 at an 9 percent interest rate, with borrowings taking place at the beginning of the month and repayments occurring at the month. Interest is pald at the time of repaying principal and computed on the portion of principal repald at that time Additional data: . Sales revenue Merchandise purchases Cash operating costs Proceeds fron sale of equipment January $590,000 410,000 107,600 February $689,880 440,000 86,080 March $695,000 560,089 149,000 29,000 Required: 1. Prepare a schedule that discloses the firm's total cash collections for January through March. 2. Prepare a schedule that discloses the firm's total cash disbursements for January through March. 3. Prepare a schedule that summarizes the firm's financing cash flows for January through March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Prepare a schedule that summarizes the firm's financing cash flows for January through March. January February March $ 0$ 0$ 0 Beginning cash balance Total receipts Subtotal Less: Total disbursements Cash excess (deficiency) before financing Financing Borrowing to maintain S90,000 balance Loan principal repaid Loan interest paid Ending cash balance $ 0 $ 0$ 0 he 05 0